PHILLIPS 66 (R66.DE) Stock Fundamental Analysis
FRA:R66 - Deutsche Boerse Ag - US7185461040 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to R66. R66 was compared to 62 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of R66 is average, but there are quite some concerns on its profitability. R66 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year R66 was profitable.
R66 had a positive operating cash flow in the past year.
R66 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years R66 had a positive operating cash flow.
1.2 Ratios
R66's Return On Assets of 2.90% is on the low side compared to the rest of the industry. R66 is outperformed by 62.90% of its industry peers.
R66 has a Return On Equity of 7.69%. This is in the lower half of the industry: R66 underperforms 62.90% of its industry peers.
R66's Return On Invested Capital of 2.34% is on the low side compared to the rest of the industry. R66 is outperformed by 77.42% of its industry peers.
R66 had an Average Return On Invested Capital over the past 3 years of 8.53%. This is below the industry average of 11.89%.
The 3 year average ROIC (8.53%) for R66 is well above the current ROIC(2.34%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 7.69% | ||
| ROIC | 2.34% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.53%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of R66 (1.47%) is worse than 77.42% of its industry peers.
In the last couple of years the Profit Margin of R66 has declined.
With a Operating Margin value of 1.19%, R66 is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of R66 has declined.
R66 has a worse Gross Margin (9.21%) than 82.26% of its industry peers.
In the last couple of years the Gross Margin of R66 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.19% | ||
| PM (TTM) | 1.47% | ||
| GM | 9.21% |
OM growth 3Y44.1%
OM growth 5Y-16.87%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
R66 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
R66 has less shares outstanding than it did 1 year ago.
R66 has less shares outstanding than it did 5 years ago.
R66 has a worse debt/assets ratio than last year.
2.2 Solvency
R66 has an Altman-Z score of 3.36. This indicates that R66 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.36, R66 belongs to the best of the industry, outperforming 82.26% of the companies in the same industry.
The Debt to FCF ratio of R66 is 8.60, which is on the high side as it means it would take R66, 8.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.60, R66 perfoms like the industry average, outperforming 43.55% of the companies in the same industry.
R66 has a Debt/Equity ratio of 0.67. This is a neutral value indicating R66 is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, R66 is doing worse than 66.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.6 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.31
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.19 indicates that R66 should not have too much problems paying its short term obligations.
The Current ratio of R66 (1.19) is worse than 61.29% of its industry peers.
R66 has a Quick Ratio of 1.19. This is a bad value and indicates that R66 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.92, R66 is doing worse than 69.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
R66 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.39%.
Measured over the past years, R66 shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.44% on average per year.
Looking at the last year, R66 shows a decrease in Revenue. The Revenue has decreased by -2.88% in the last year.
R66 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.91% yearly.
EPS 1Y (TTM)-61.39%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-104.85%
Revenue 1Y (TTM)-2.88%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.27%
3.2 Future
The Earnings Per Share is expected to grow by 21.13% on average over the next years. This is a very strong growth
R66 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.52% yearly.
EPS Next Y18.63%
EPS Next 2Y40.74%
EPS Next 3Y30.56%
EPS Next 5Y21.13%
Revenue Next Year-4.73%
Revenue Next 2Y-2.7%
Revenue Next 3Y-1.8%
Revenue Next 5Y-5.52%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.39 indicates a rather expensive valuation of R66.
R66's Price/Earnings ratio is a bit more expensive when compared to the industry. R66 is more expensive than 70.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of R66 to the average of the S&P500 Index (29.35), we can say R66 is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.19, R66 is valued on the expensive side.
70.97% of the companies in the same industry are cheaper than R66, based on the Price/Forward Earnings ratio.
R66's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 17.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, R66 is valued a bit more expensive than the industry average as 79.03% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of R66 indicates a slightly more expensive valuation: R66 is more expensive than 66.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.75 | ||
| EV/EBITDA | 16.97 |
4.3 Compensation for Growth
R66's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
R66's earnings are expected to grow with 30.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y40.74%
EPS Next 3Y30.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, R66 has a reasonable but not impressive dividend return.
R66's Dividend Yield is comparable with the industry average which is at 60.92.
R66's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of R66 has a limited annual growth rate of 5.09%.
Dividend Growth(5Y)5.09%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
89.32% of the earnings are spent on dividend by R66. This is not a sustainable payout ratio.
R66's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP89.32%
EPS Next 2Y40.74%
EPS Next 3Y30.56%
FRA:R66 (3/7/2025, 7:00:00 PM)
114.58
+2.6 (+2.32%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners75.37%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap46.71B
Analysts77.5
Price Target133.9 (16.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend4.13
Dividend Growth(5Y)5.09%
DP89.32%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.3%
Min EPS beat(2)21.9%
Max EPS beat(2)36.71%
EPS beat(4)3
Avg EPS beat(4)15.18%
Min EPS beat(4)-13.39%
Max EPS beat(4)36.71%
EPS beat(8)6
Avg EPS beat(8)14.06%
EPS beat(12)9
Avg EPS beat(12)12.07%
EPS beat(16)13
Avg EPS beat(16)18.48%
Revenue beat(2)2
Avg Revenue beat(2)4.14%
Min Revenue beat(2)3.91%
Max Revenue beat(2)4.37%
Revenue beat(4)4
Avg Revenue beat(4)6.53%
Min Revenue beat(4)3.91%
Max Revenue beat(4)9.07%
Revenue beat(8)7
Avg Revenue beat(8)4.46%
Revenue beat(12)10
Avg Revenue beat(12)4.24%
Revenue beat(16)13
Avg Revenue beat(16)3.77%
PT rev (1m)0.28%
PT rev (3m)-4.67%
EPS NQ rev (1m)-21.57%
EPS NQ rev (3m)-59.36%
EPS NY rev (1m)-6.02%
EPS NY rev (3m)-25.07%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 17.19 | ||
| P/S | 0.35 | ||
| P/FCF | 21.75 | ||
| P/OCF | 12.1 | ||
| P/B | 1.85 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 16.97 |
EPS(TTM)5.62
EY4.9%
EPS(NY)6.67
Fwd EY5.82%
FCF(TTM)5.27
FCFY4.6%
OCF(TTM)9.47
OCFY8.26%
SpS323.41
BVpS61.92
TBVpS55.74
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 7.69% | ||
| ROCE | 2.97% | ||
| ROIC | 2.34% | ||
| ROICexc | 2.41% | ||
| ROICexgc | 2.54% | ||
| OM | 1.19% | ||
| PM (TTM) | 1.47% | ||
| GM | 9.21% | ||
| FCFM | 1.63% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.53%
ROIC(5y)N/A
ROICexc(3y)9.24%
ROICexc(5y)N/A
ROICexgc(3y)9.66%
ROICexgc(5y)N/A
ROCE(3y)10.82%
ROCE(5y)N/A
ROICexcg growth 3Y39.36%
ROICexcg growth 5Y-16.24%
ROICexc growth 3Y39.8%
ROICexc growth 5Y-15.48%
OM growth 3Y44.1%
OM growth 5Y-16.87%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.6 | ||
| Debt/EBITDA | 4.48 | ||
| Cap/Depr | 78.67% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 103% | ||
| Profit Quality | 110.68% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 3.36 |
F-Score5
WACC7.59%
ROIC/WACC0.31
Cap/Depr(3y)111.89%
Cap/Depr(5y)132.17%
Cap/Sales(3y)1.41%
Cap/Sales(5y)2.09%
Profit Quality(3y)84.92%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.39%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%-104.85%
EPS Next Y18.63%
EPS Next 2Y40.74%
EPS Next 3Y30.56%
EPS Next 5Y21.13%
Revenue 1Y (TTM)-2.88%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-12.27%
Revenue Next Year-4.73%
Revenue Next 2Y-2.7%
Revenue Next 3Y-1.8%
Revenue Next 5Y-5.52%
EBIT growth 1Y-79.03%
EBIT growth 3Y56.63%
EBIT growth 5Y-11.96%
EBIT Next Year114.07%
EBIT Next 3Y37.52%
EBIT Next 5Y21.76%
FCF growth 1Y-49.43%
FCF growth 3Y-17.53%
FCF growth 5Y20.06%
OCF growth 1Y-40.38%
OCF growth 3Y-11.36%
OCF growth 5Y-2.71%